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What is it?· Specialisation occurs when workers are assigned specific tasks within production process. Specialisation can occur between nations, this will allow for individual countries to produce certain goods that they are best at and then exchange with other countries.· The division of labour is a particular type of specialisation where the production of a good is broken up into many separate tasks each performed by one person or by a small group of people.…read more

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Example...· On a automobile production line you have many different jobs that each person does explicitly. One person will put the seats in, another will attach the windshield, and a third puts on the lugnuts.…read more

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ADVANTAGES DISADVANTAGES ·Allows workers to gain skills in a narrow ·Workers begin to take less pride inrange of tasks. their work and quality suffers, the ·It makes cost effective to provide result may be a problem ofworkers with specialist tools e.g not diseconomies of scale.every farm worker needs a tractor ·Workers may get bored, so slowertherefore it would only make sense togive one to the one who need it. production- less efficient. ·Time saved as workers specialise tasks ·The division of labour also runs thebest suited for them. risk that if one machine breaks down ·The division of labour raises output per then the entire factory stops.person, thereby reducing costs per unit ·Some workers receive a narrowbecause lower skilled workers are easily training and may not be able to findtrained and quickly become proficient alternative jobs if they findthrough constant repetition of a task ­ themselves out of work.`practice makes perfect' ­ or "learning bydoing". ·Mass-produced standardized goods ·Total output of goods and services is tend to lack variety.raised and quality can be improved. Ahigher output at lower costs means morewants and needs might be satisfied witha given amount of scarce resources.…read more

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`Wealth of Nations' by ADAM SMITH· Adam Smith's "Wealth of Nations" is regarded as having been the first great work of Political Economy. It is in some ways an enhancement of his "Theory of Moral Sentiments" in that it focuses on the problems of how people express their self- interest and their morality. Adam Smith attempted to trace the immediate expression of human activity and to suggest how this would change society.· Smith saw in the division of labor and the extension of markets almost limitless possibilities for society to expand its wealth through manufacture and trade. Wealth consists of the goods which all the people of society consume; note all - this is a democratic, and hence radical, philosophy of wealth. Gone is the notion of gold, treasures, kingly hoards; gone the prerogatives of merchants or farmers or working guilds. We are in the modern world where the flow of goods and services consumed by everyone constitutes the ultimate aim and end of economic life.· Although Economics has moved on in many was from the outlook and policies endorsed in the Wealth of Nations that epoch-making publication remains as perhaps the most famous economics book of all time. Governments in search of a strengthening of their states through economic policy, and many individuals in search of personal gain, have all drawn lessons from its pages. Powerful movements that led to the emergence of Modern Capitalism were substantially based on Smith's work and hence he deserves to be regarded as one of the most dramatically influential philosophers or philosophic writers of modern times.…read more